The Impact of Population Aging on a Country’s Global Value Chain Position: Unraveling the Dynamics and Mechanisms

KaiYao Wu, Feng Chen, Sajid Anwar and Li Liao

Emerging Markets Finance and Trade, 2024, vol. 60, issue 11, 2367-2388

Abstract: This article utilizes a novel approach by combining the export domestic value-added rate and export technology complexity to gain insights into a country’s comprehensive global value chain (GVC) position. Additionally, we incorporate psychological theories, specifically fluid intelligence and crystallized intelligence, to elucidate the impact of population aging on a country’s GVC position. The empirical results reveal that population aging has a positive and statistically significant effect on the comprehensive indicators of a country’s GVC position and export technology complexity. However, it exerts a negative and statistically significant influence on the export domestic value-added rates. These findings hold robustly across various tests conducted. Notably, we find that the influence of population aging on different GVC position indicators varies depending on the income level, degree of aging, and rate of aging acceleration.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:60:y:2024:i:11:p:2367-2388

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DOI: 10.1080/1540496X.2023.2300636

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